Hub24 Ltd (ASX: HUB) shares are under pressure on Thursday.
At the time of writing, the ASX 200 share is down 2% to $87.95.
Nevertheless, the investment platform provider's shares remain up almost 90% since this time last year.
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Can this ASX 200 share keep rising?
The team at Bell Potter is likely to see today's weakness as a buying opportunity.
That's because the broker has become even more bullish on Hub24 this week and has boosted its valuation materially.
Commenting on the ASX 200 share, the broker points out that the market has yet to fully price in recent market movements. It said:
We mark-to-market our investment forecasts and highlight key expectations for 4Q25. Share market movements since "Liberation Day" have been both swift and significant, and consensus expectations have yet to reflect this development. We have upgraded our platform-based share market movements from $1,333m to $4,987m, incorporating closing prices and historical correlations. This results in a +3% uplift to our 4Q25 FUA assumptions, assuming net inflows remain stable and insulated from market volatility.
All major indices closed higher on the prior quarter, and we note: 1) both the S&P/ASX 200 and All Ords Accumulation gained +9.5%, having demonstrated strong predictive power for FUA when viewed in hindsight based on recent updates; 2) US benchmarks improved significantly, including the Dow Jones +5.0%, S&P 500 +10.6% and Nasdaq +17.6%; 3) Asian markets also performed well with Nikkei 225 +13.7%; 4) Europe was more modest with FTSE 100 lifting +2.1%; and 5) local government bond benchmarks rose +2.6%, and corporate bonds gained +2.3%, alongside +4.5% appreciation in the AUD versus USD. Our revised FUA market movements represent +4.9% of opening.
Valuation boosted
In light of the above, the broker has reaffirmed its buy rating on the ASX 200 share with a vastly improved price target of $100.00 (from $75.00).
Based on its current share price, this implies potential upside of almost 14% for investors over the next 12 months.
Bell Potter notes that 2025 is looking like a milestone year for this fast-growing company. It said:
FY25 is shaping up to be a milestone year for HUB with revenue supported by record net fund flows, recovering financial adviser additions, accelerated license agreement signings and development of new platform menu offer partnering with investment managers to drive growth. HUB has seen the largest annual market share gain of all platform providers and commands 7.9% of the serviceable addressable market.
We would see HUB as exposed to strong secular trends including superannuation system growth, HNW client assets and managed accounts adoption. This is amplified by upside to EBITDA margins, predicated on announced large migrations and efficiency improvement per dollar of Custody FUA.
